Buying Gold

[Bestoutwest]

Alright, long story short: I'm thinking about investing in some gold. Anyone on here do it? Have done it? How hard is it to acquire it? How hard is it to sell it? How do you store it (without giving specifics like "I bury it at 40ft intervals from the NW corner of my house")? Any tips that you wish you had known?

Thanks

 

[TexasBred]

I own gold coins but don't take physical delivery of them. They are kept in safekeeping in Switzerland. Should I decide to sell I simply put in a sell order with the broker and if the sale goes through my money will be wired the next day.

 

[Jogeephus]

Not hard to buy at all. Several places will sell ingots and coins. I don't think it wise to buy the paper. Seems like that is defeating the purpose. Some places may charge sales tax but its exempt in many states since you are just "swapping currency" so don't fall for this. You can look online and several places will send you brochures showing your options.

If you know someone who runs a pawn shop they are great sources of information on this subject and depending on how close you are to them they might let you in on a few trades that could be beneficial to you both.

 

[Margonme]

Gold is a hedge investment. It hedges against economic calamities such as radical changes in currency values or interest rates. You can invest in mutual funds that hold gold bullion or coins. That way you never have to physically manage the gold.

If you are expecting an apocalypse, then you may want an investment where you take possession. I personally think that is risky. What good is gold anyway if society is in meltdown?

There are mutual funds that invest in gold mining companies. That is a good hedge.

Yes, pawn shops provide markets in gold but I strongly suggest you NOT invest through a pawn shop. Pawn shops are one layer removed from meth heads. A joke but not too far off.

 

[HDRider]

I knew a prepper that hordes toilet paper. He thought that would make a good currency when tshtf.

If that day ever comes (and I think it might) livestock, guns and a garden would be the best investment.

 

[Margonme]

I invest through Fidelity. My first investment with them was in 1980. You don't get any pressure from what I call "stock pimps". I made my own decisions. The investments most companies push are "sweetheart deals". Fidelity does not do that. They are Class Act.

I have held Fidelity Select Gold Portifolio. Symbol FSAGX.

 

[papavillars]

When I had my pawn shop I bought gold daily. I still run an ad for gold and silver. I like the availability of selling it to a smelter when I need instant cash. It takes a little acid and a rub stone to make sure it's not gold plated. I do invest with the market in gold futures. Gold has always been a hedge against inflation. Silver is a little trickier, but doable also. It takes a lot of silver to amount to a nice handful of dollars. Silver stemware or serving pieces bring the most money followed by flatware.

 

[TexasBred]

When I think of people and their gold I imagine a guy holding a bar of gold trying to shave off the few flakes he thinks it will take to make a purchase. Then put the remaining chunk back in his "back pack".

 

[Caustic Burno]

Gold is a hedge investment. It hedges against economic calamities such as radical changes in currency values or interest rates. You can invest in mutual funds that hold gold bullion or coins. That way you never have to physically manage the gold.

If you are expecting an apocalypse, then you may want an investment where you take possession. I personally think that is risky. What good is gold anyway if society is in meltdown?

There are mutual funds that invest in gold mining companies. That is a good hedge.

Yes, pawn shops provide markets in gold but I strongly suggest you NOT invest through a pawn shop. Pawn shops are one layer removed from meth heads. A joke but not too far off.

It is a hedge against inflation as it never gains or looses more than what a dollar is worth.
It is not really an investment but a safety net against inflation.

 

[Margonme]

Gold is a hedge investment. It hedges against economic calamities such as radical changes in currency values or interest rates. You can invest in mutual funds that hold gold bullion or coins. That way you never have to physically manage the gold.

If you are expecting an apocalypse, then you may want an investment where you take possession. I personally think that is risky. What good is gold anyway if society is in meltdown?

There are mutual funds that invest in gold mining companies. That is a good hedge.

Yes, pawn shops provide markets in gold but I strongly suggest you NOT invest through a pawn shop. Pawn shops are one layer removed from meth heads. A joke but not too far off.

It is a hedge against inflation as it never gains or looses more than what a dollar is worth.
It is not really an investment but a safety net against inflation.

Gold performs in the inverse proportion to inflation. Right now gold is not far off its historical highs. Today it was about $1344 per ounce. The high is approximately $1600 per ounce.

You are correct. It hedges against inflation. The current high, seems to be predicting something else. Right now, the government is under-reporting inflation. I stopped at Walmart today and picked up about 7 items that 10 years ago would have cost $10. Today it cost $30. In this Era of Voodoo economics, that level of inflation is being significantly under reported.

 

[Nesikep]

Beware of "Gold certificates".. anything claiming to be gold where you only have paper to show for it.. just like 'leveraged' lending, they have 'leveraged' the gold, so there's less gold than there are certificated issued for, and if SHTF and you're not the first guy in line to cash it in, there's no guarantee you'll have any.. They make it 'look' legitimate by charging 'storage fees'.

Buying ingots from a bank usually means you can only sell it back to THAT bank and must provide the purchase receipt.. if you don't, it will need to be re-assayed. (at least that's the way it works around here)
Gold coins on the other hand do not have those limitations, but you may pay have to pay more than the price of the value of the gold in exchange for that benefit.

I don't think gold is a good hedge against the normal, daily inflation we always see (stocks are probably better).. it is however a good hedge against sudden, uncontrolled inflation where stock prices crash.

Ron, yep, inflation is terribly under reported because the single greatest factor affecting inflation isn't included in the index.. housing and land... Vancouver has some of the most stupid housing prices around.. a lot with a nice view, on a cliff overlooking the ocean is about 1.5 million, and will take an additional 3 million in shoring and geotechnical work before a brick is laid.. Many lots inside the city (no real view) are over $1M with a nice (1980?) house that gets torn down. Since we bought here 25 years ago land has gone up close to 10x in value.. I know the power of compound interest is the greatest in the universe, but 1.5% (claimed inflation) over 25 years doesn't even come close to 10x
(1.5% over 25 years is a 45% increase... 9.8% over 25 years is ~10x)

 

[Nesikep]

Oh, and it just so happens to be that your 7 walmart items that tripled in price over 10 years.. yes, that's right at 11%ish inflation as well.

And lets not forget about "hidden" inflation... the decline in quality over time.. 30 years ago you bought a bucket for $2 and that bucket just broke.. Today that bucket is $10, but you're lucky if you get a few years out of it!.. that is also a form of inflation that isn't reported

 

[js1234]

Oh, and it just so happens to be that your 7 walmart items that tripled in price over 10 years.. yes, that's right at 11%ish inflation as well.

And lets not forget about "hidden" inflation... the decline in quality over time.. 30 years ago you bought a bucket for $2 and that bucket just broke.. Today that bucket is $10, but you're lucky if you get a few years out of it!.. that is also a form of inflation that isn't reported

The other "hidden" inflation, that is very real, is the reduction in productivity that has been on a declining trajectory more or less from the close of the heady days of the post war boom to now, that reduces the real dollar value of one's income.

 

[js1234]

I invest a little in gold and silver, some physical and some via mining companies and indexes.
Which physical gold is best is like asking which breed of bull is best. For me, I've been the happiest and am exclusively moving forward with British Sovereigns for fractional coins (+/- .35oz) and Krugerrands for 1oz. coins in terms of physical gold.
This summer I've bought some physical gold and silver but also Pounds as I feel the currency was oversold post Brexit in relation to longterm value.

 

[TennesseeTuxedo]

Seeds boys. Own lots of seeds when the SHTF as some warn. Being able to plant and harvest your own food will be invaluable. You'll be trading seeds for guns and bullets and anything else you need.

Papa V, I apologize for Margon lumping you in with meth heads. The boy ain't right I tell ya.

 

[True Grit Farms]

Beware of "Gold certificates".. anything claiming to be gold where you only have paper to show for it.. just like 'leveraged' lending, they have 'leveraged' the gold, so there's less gold than there are certificated issued for, and if SHTF and you're not the first guy in line to cash it in, there's no guarantee you'll have any.. They make it 'look' legitimate by charging 'storage fees'.

Buying ingots from a bank usually means you can only sell it back to THAT bank and must provide the purchase receipt.. if you don't, it will need to be re-assayed. (at least that's the way it works around here)
Gold coins on the other hand do not have those limitations, but you may pay have to pay more than the price of the value of the gold in exchange for that benefit.

I don't think gold is a good hedge against the normal, daily inflation we always see (stocks are probably better).. it is however a good hedge against sudden, uncontrolled inflation where stock prices crash.

Ron, yep, inflation is terribly under reported because the single greatest factor affecting inflation isn't included in the index.. housing and land... Vancouver has some of the most stupid housing prices around.. a lot with a nice view, on a cliff overlooking the ocean is about 1.5 million, and will take an additional 3 million in shoring and geotechnical work before a brick is laid.. Many lots inside the city (no real view) are over $1M with a nice (1980?) house that gets torn down. Since we bought here 25 years ago land has gone up close to 10x in value.. I know the power of compound interest is the greatest in the universe, but 1.5% (claimed inflation) over 25 years doesn't even come close to 10x
(1.5% over 25 years is a 45% increase... 9.8% over 25 years is ~10x)

Nesikep, the trick is to sell out and find another place that does the same thing. Does Canada have property taxes? Property taxes will eat your lunch on high dollar land that has no or very little monetary return.

 

[Margonme]

Seeds boys. Own lots of seeds when the SHTF as some warn. Being able to plant and harvest your own food will be invaluable. You'll be trading seeds for guns and bullets and anything else you need.

Papa V, I apologize for Margon lumping you in with meth heads. The boy ain't right I tell ya.

I saw that. I think we all get too loose with labeling people.

I apologize for my exaggeration.

My point is that I don't consider a pawn shop as a "financial investment" institution. I was trying to direct Best somewhere to make sound long-term investments. Pawn shops are fine if you want to purchase precious metal ingots (some come in one ounce) or coins. Candidly, pawn shops rarely offer bargains. I have looked at guns and tools in Pawn Shops, they are usually overpriced. I know there must be exceptions and Papa V may have been one.

 

[hurleyjd]

Gold cannot fill an empty stomach. Also when the SHTF everyone will be effected and may not have the need for gold.
Also I do not think that there will be a problem at all the best investment for the future is having capable people in charge of the government do not listen to the naysayers and use your on knowledge when voting.

 

[Jogeephus]

Gold cannot fill an empty stomach. Also when the SHTF everyone will be effected and may not have the need for gold.
Also I do not think that there will be a problem at all the best investment for the future is having capable people in charge of the government do not listen to the naysayers and use your on knowledge when voting.

True, but what has more value today, confederate money or confederate gold?

Margo, I never knew we had meth heads on CT but meth-head or not I suspect he knows more about gold than most and I wouldn't hesitate to learn from him because all that glitters is not gold and I'm sure he knows the difference.

 

[dun]

We ahve gold coins we bought many years ago. Canadian Maple leafs and Krugerands. They're stuck in the back of the safe for a just in case scenerio.